Why the US and EU are failing to set information free

Susan Ariel Aaronson 14 July 2014

a

A

Tim Berners-Lee, the architect of the World Wide Web, taught us that the internet we have is a function of the choices we (users, companies, policymakers, etc.) make about information flows. For example, in 1995, Berners-Lee chose not to patent his work on the World Wide Web because he feared patenting it could limit its universality and openness. He continues to advocate this. In March 2014, he called for an online bill of rights and created a new organisation to ensure that the web would remain the “web we want” – open, free, and neutral.

a

A

Topics:  EU policies Global governance International trade

Tags:  US, EU, WTO, information technology, trade, technology, internet, Human rights, national security, Information, free trade agreements, data protection, privacy

A way out of the Ukrainian quagmire

Thorvaldur Gylfason, Inmaculada Martínez-Zarzoso, Per Magnus Wijkman 14 June 2014

a

A

At the Vilnius Summit in November 2013, President Yanukovich chose not to sign the Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU that Ukraine had spent five years negotiating.1 His decision was dictated both by Ukraine’s failure to fulfil the political conditions for signature set by the EU and by strong pressure by Russia on Ukraine to join the Eurasian Customs Union instead.2 His refusal to sign unleashed events in Ukraine that within six months led to the President’s flight to Russia, the installation of a new pr

a

A

Topics:  EU policies Europe's nations and regions International trade

Tags:  Russia, EU, civil war, free trade agreements, Ukraine, diplomacy

Mega-regionals and the mega-mess: A way out

Jayant Menon 09 June 2014

a

A

Jagdish Bhagwati (1991) famously described the maze of overlapping free trade agreements (FTAs) as akin to a ‘spaghetti bowl’. Several decades later, with the rise of mega-regionals like the Regional Comprehensive Economic Partnership and the Trans-Pacific Partnership (TPP), the fragmentation of the world trade system more closely resembles a jigsaw puzzle. How do we solve this mess? One approach being pursued is to consolidate bilateral FTAs into regional blocs, and then to try and link the blocs up globally – or at least hope that they will eventually.

a

A

Topics:  Global governance International trade

Tags:  WTO, trade liberalisation, trade, reciprocity, free trade agreements, Trans-Pacific Partnership, multilateralisation of preferences, mega-regionals, Regional Comprehensive Economic Partnership

An EU-US trade deal: Good or bad for the rest of the world?

Aaditya Mattoo 10 October 2013

a

A

The recent launch of negotiations on a transatlantic trade and investment deal has been widely welcomed. The prime minister of the UK, David Cameron, called it a “once-in-a-generation prize” and produced numbers on why everyone should be happy; gains of £100 billion for the EU, £80 billion for the US and £85 billion to the rest of the world.

a

A

Topics:  International trade

Tags:  free trade agreements, harmonisation, standards

Can FTAs support ‘Factory Asia’?

Jayant Menon 14 May 2013

a

A

Free trade agreements (FTAs) have been proliferating in Asia for more than a decade. Production networks and the product-fragmentation trade that they generate have been growing for a much longer period. In fact, since ‘Factory Asia’ emerged, well before FTAs (Baldwin 2008). They are clearly not necessary for the formation of production networks, but can they support production networks’ further growth and/or spread?

a

A

Topics:  International trade

Tags:  barriers to trade, free trade agreements, production fragmentation, global supply chain

Evaluating Asia’s mega-regional RTA: The Regional Comprehensive Economic Partnership

Ganeshan Wignaraja 06 April 2013

a

A

Asia is following a global trend towards mega-regional regional trade agreements with the recent launch of negotiations for a Regional Comprehensive Economic Partnership. Led by ASEAN, the negotiations will include all ASEAN members and its six FTA partners: i.e. Japan, China, South Korea, India, Australia, and New Zealand. Successfully concluding this trade deal would create the world’s largest free-trade bloc with profound economic implications for members and for the world economy.

a

A

Topics:  Global governance International trade

Tags:  regionalism, Asia, free trade agreements, RCEP

The surprise end game in global trade

Kati Suominen 20 December 2012

a

A

With President Obama looking on, China orchestrated the launch of negotiations for a tripartite free trade deal with Korea and Japan during the recent East Asia Summit. But as much as China is assumed to be the new powerbroker in global commerce, Beijing’s moves are reactionary. The end game in world trade politics is controlled by the three economies that brokered deals also in the 20th century, i.e. the US, Japan, and the EU.

a

A

Topics:  Global governance International trade

Tags:  WTO, free trade agreements, Trans-Pacific Partnership

A Big Deal: Canada and Mexico join the Pacific Trade Pact

Claude Barfield 01 August 2012

a

A

The most significant development during the G20 summit in Mexico occurred on the sidelines and was largely buried in media reports. It was the decision to invite Canada and Mexico to join negotiations for the Trans-Pacific Partnership (TPP). Adding Mexico and Canada to the current nine-member TPP will result—if negotiations are successful—in a free-trade area covering some 658 million people and about $20.5 trillion in economic activity.

a

A

Topics:  International trade

Tags:  regionalism, free trade agreements, Trans-Pacific Partnership

Rising protectionism and the subordination of trade policy

Simon J Evenett interviewed by Viv Davies,

Date Published

Fri, 07/20/2012

a

A

See Also

See also:

Débâcle: The 11th GTA report on protectionism (Simon Evenett, 14 June 2012)

Mounting tensions pose a test for world trade (Vox Talk with Simon Evenett, 25 November 2011)

Transcript

View Transcript

Viv Davies: Hello and welcome to Vox Talks, a series of audio interviews with leading economists from around the world. I’m Viv Davies from the Centre for Economic Policy Research, it’s 17 July 2012 and I’m speaking with Professor Simon Evenett of the University of St Gallen about the recent rise of protectionist measures in the world trading system. We also discuss the implications of the rise in regional trade agreements, the potential effect of Russia joining the WTO, and the impact of slow growth and recession in Europe on the region’s trade with the rest of the world.

I began by asking Simon what the recent rise in protectionism means for world trade. 

Simon Evenett: It means that the world economy is facing a greater risk of more closed markets and a stalled recovery because of protectionism. The recent uptick in protectionism has been mentioned not just by the WTO but by the European Commission, the International Chamber of Commerce and the so-called B20 group of business leaders. The findings of the Global Trade Alert report were discussed by some of the participants at Los Cabos, the G20 summit, and I think the profile of this issue has been raised appropriately by a large range of individuals and organisations.

Viv: What sort of protectionist measures are we seeing most commonly used now?

Simon: Measures being used at the moment are a combination of traditional antidumping, the so-called trade defence measures, some resort to subsidies by countries, especially those who have engaged in industrial policymaking initiatives, and also a number of export restrictions which are limiting the supply of commodities and other items to the world economy.

Viv: And what does this mean for the efficacy of WTO rules? Are they not working?

Simon: WTO rules have been negotiated over time and are still fairly incomplete. Where they are tough they’re very valuable and have probably done a good job in deterring some protectionism, but I would put a greater emphasis on the rules being incomplete and this inducing a switch in the form of protectionism. Overall I think the WTO rules have altered the composition of protectionism more than its level.

Viv: So who’s the biggest offender in terms of implementing protectionist measures? And who’s suffering the most as a consequence of protectionism?

Simon: Global Trade Alert cuts the data up in a number of different ways, and depending on different metrics you come out with different lead offenders. But amongst the top offending countries are Japan, the European Union countries taken together, Brazil, India, and China. Those are perhaps the worst five. Argentina also recurs heavily in the list of offenders.

In terms of the countries which have been hit the most these are the biggest exporters in the world, so obviously China, the United States, the major European nations, have been hit many, many times. We've seen over 500 hits for some of those countries since November 2008.

Viv: We’re also seeing quite a rise in the number of regional trade agreements being made. In 2010, for example, the China-ASEAN Free Trade Area was established; the European Union, too, is making deals with Colombia and Peru, with possible deals in the pipeline with India, Japan and the US. Is the rise of regional trade agreements a good thing for world trade?

Simon: The rise of regional trade agreements is probably mixed for the world trading system. There’s a long-standing concern amongst economists that regional trading agreements divert trade away from more competitive firms towards those which have tariff breaks.

But the other offsetting feature is that regional trading agreements have been fairly effective in introducing rules on behind-the-border policies, regulatory policies which affect domestic and foreign businesses as well. So any balance sheet of the costs and benefits is going to have to weigh up these two factors.

As tariffs come down over time, the trade diversion costs are probably getting smaller and smaller. They’ll probably be concentrated more in agriculture than in manufacturing, whereas the behind-the-border issues just seem to get more and more important over time. So on net I’m cautiously positive about regional trading agreements being a good force in the world economy, but I don’t believe you can argue that they’ve delivered a lot of economic benefits in most cases.

Viv: Okay. So Russia is, at last, just about to join the WTO. What do you think are the likely implications and consequences of that?

Simon: There are few people rejoicing that Russia is joining the WTO. This is partly because the Russian position on negotiations is not likely to be one which is open to further liberalisation. If anything the recent policy moves in Russia have been towards more protectionism and the substitution of imports. Overall, people are concerned about what the impact of Russia’s accession will be on negotiations and on the balance of those negotiations.

Furthermore, Russia will soon be subject to WTO dispute settlement and could well be the target of a number of enforcement actions by other countries, and this could make for some fractious times in Geneva as well. On net this is not the happiest development but, still, it’s better to have Russia inside the World Trade Organisation’s tent and hopefully over time its policy priorities will evolve.

Viv: What impact is the slow growth and recessionary environment having on Europe’s trade with the rest of the world? And what are the likely implications?

Simon: There’s a big knock-on effect of western European slow growth on trade with both eastern Europe and with China, and this is where we’ve seen the most immediate impact. This in turn I think is inducing, in the case of China, further government measures, including indirect subsidisation through their banking system as well as other measures to stimulate domestic demand.

The transatlantic effect of that has been rather limited but that’s because, again, the American and Canadian trade exposure is, while numerically rather large, proportionately not so big as a share of their exports. Not every region is particularly affected.
When it comes to the impact within Europe, again you would expect to see something of a downtick in imports in the periphery countries, which I think we are seeing, whereas Germany and some of the northern countries appear to be exporting plenty to the rest of the world. They seem to have substituted away some of their export dependency on the periphery for other, faster-growing, parts of the world. That realignment I think you’ll see continue.

Viv: Finally, Simon, what sort of future do you see for world trade? Are you optimistic?

Simon: I think world trade has been not a key priority of governments, or at least promoting world trade hasn’t been. I think trade policy has been subordinated below other policy objectives throughout this crisis. For as long as that is the case, one has to be a bit wary and cautious about where the world trading system is heading. I don’t think the current situation is anything to feel happy about. It’s certainly not excessively gloomy or anything like the 1930s, but I do think we need to be cautious and defenders of the world trading system need to be making a case for trade policy and openness as a government priority, instead of being outmanoeuvred by the other key players in the macroeconomic policy debates and debates about financial stabilisation.

 

a

A

Topics

International trade
Tags
Russia, WTO, protectionism, Global Trade Alert, free trade agreements

Related Article(s)

Antidumping as cooperation The shifting geography of global value chains: Implications for developing countries and trade policy The UK economy in a global world
MP3 File Details

Listen

Unfortunately the file could not be found.

Open in a pop-up window Open in a pop-up window

Download

Download MP3 File (6.76MB)

MP3 File Size

6.76MB

MP3 Length (Minutes)

7

MP3 Length (Seconds)

21

When

July 2012

Where

London

Deep integration in free trade agreements in China and India

Ganeshan Wignaraja 04 July 2012

a

A

Since the 2000s, creeping protectionism and the stalled WTO Doha Round trade talks have prompted China and India to pursue a variety of bilateral and regional free trade agreements (FTAs). Before 2000, the sole FTA involving China and India was the Asia-Pacific Trade Agreement. By February 2012, the Asian giants were among the region’s leaders in trade agreements with 12 FTAs in effect in China and 13 in India. These figures are likely to rise as both giants are presently negotiating increasingly ambitious FTAs.

a

A

Topics:  International trade

Tags:  China, India, free trade agreements

Pages

Events